The partners didn't disclose the purchase price paid to Avista Properties of Orlando. But local hospitality industry brokers familiar with the property tell GlobeSt.com the contract price for the six-story hotel was probably in the replacement range of $90,000 per room or a total $15 million.
The joint venture has closed the hotel and will re-open it later this year after a complete interior and exterior renovation is completed. The partners didn't disclose the estimated renovations cost but area brokers tell GlobeSt.com the expenses could reach $2 million-plus. Paramount will oversee the renovation and operate the hotel which is being renamed the Radisson Hotel Jacksonville-Butler Boulevard.
"This is a well-located, well-built property that will benefit from a major renovation and repositioning as a Radisson franchise," says Paramount president Ethan Kramer. Paramount is looking for additional third-party management contracts and equity ownership participations in joint ventures.
The hotel is located within a major suburban office market, south of Downtown Jacksonville, near the two major medical facilities of Major Clinic and St. Luke's Hospital.
Paramount CEO David A. Simon credits AMC Delancey officials for cementing the hotel acquisition. "They focused on aligning our mutual interests and on creating long-term value for the joint venture," Simon says.
Founded in 1999, Paramount manages and has ownership interests in 27 properties totaling 3,000 rooms. AMC Delancey Group Inc. was founded by Kenneth P. Balin in 1992 and is an affiliate of King of Prussia, PA-based AMC Group LLC.
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